TMI Blog2016 (8) TMI 1498X X X X Extracts X X X X X X X X Extracts X X X X ..... ised by the assessee is dismissed. Disallowance of rental income from house property - CIT(A) confirming the rental income of the property higher market value of the property during the said period - HELD THAT:- Considering the area, location, etc., the value of the property taken by the AO is more or less double for the Medavakkam property, the rental income worked out by the AO should be 50%, as has been rightly claimed by the assessee, which should be accepted. Admittedly, the assessee has not filed any documentary evidence before the Tribunal with regard to the claim of rental income. Moreover, the assessee has not raised such issue before the AO or before the ld. CIT(A). AO needs to verify the correctness of the claim of the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th questionnaire dated 12.11.2013 was also issued and served on the assessee. After considering the submissions of the assessee, the Assessing Officer has completed the assessment under section 143(3) of the Act by determining total income of the assessee at ₹.70,29,200/- after making various disallowances. 3. The assessee carried the matter in appeal before the ld. CIT(A). After considering the submissions of the assessee, the ld. CIT(A) dismissed the appeal of the assessee. 4. On being aggrieved, the assessee is in appeal before the Tribunal. With regard to the first issue, by filing detailed written submissions, the ld. Counsel for the assessee has pleaded that by applying the Indian Income Tax Act as well as the India-China ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned by going through the article 15(1) and article 23 of DTAA between India and China and observed that only residents are allowed to claim such relief. Since the assessee is nonresident and moreover Ford India Pvt. Ltd. has paid salary in India, it has deducted the TDS for the salary paid in India. He further observed that the exemption under article 15(1) will not be applicable to the assessee because of article 23 of DTAA between India and China which allows exemption to a resident Indian , whereas, in the instant case, the assessee is non-resident for the purpose of Income Tax Act, 1961. Therefore, the ld. CIT(A) confirmed the disallowance of exemption under article 15(1) to the assessee and taxing the salary paid in India under the sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re not applicable to the facts of the present case because in the instant case, the assessee is non-resident Indian resident of China. For the sake of clarity, Article 23 of the India-China DTAA is reproduced as under: ARTICLE 23 METHODS FOR THE ELIMINATION OF DOUBLE TAXATION 1. In China, double taxation shall be eliminated as follows : (a) Where a resident of China derives income from India the amount of tax on that income payable in India in accordance with the provisions of this Agreement, may be credited against the Chinese tax imposed on that resident. The amount of credit, however, shall not exceed the amount of the Chinese tax on that income computed in accordance with the taxation laws and regulations of China. (b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above facts and circumstances, the assessee is not eligible to claim exemption under section 5(2) of the Income Tax Act and accordingly, the ground raised by the assessee is dismissed. 10. The next ground raised in the appeal of the assessee is that the ld. CIT(A) has erred in confirming the rental income of the property situated at Medavakkam at INR 10,000 per month though the market value of the property during the said period was much lower. 10.1 In the assessment order, the Assessing Officer has observed that the assessee has offered rental income of ₹.60,000/- from a property at Medavakkam, Chennai. When the assessee was asked to file copy of rental agreement or other evidence in support of the rental income offered, vide h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Medavakkam property, the rental income worked out by the Assessing Officer should be 50%, as has been rightly claimed by the assessee, which should be accepted. Admittedly, the assessee has not filed any documentary evidence before the Tribunal with regard to the claim of rental income. Moreover, the assessee has not raised such issue before the Assessing Officer or before the ld. CIT(A). Thus, we are of the considered opinion that the Assessing Officer needs to verify the correctness of the claim of the assessee. Accordingly, we remit the matter to the file of the Assessing Officer to verify and decide the issue afresh after allowing an opportunity of hearing to the assessee. This ground of appeal of the assessee is allowed for statis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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